Revised property tax under the Self-Assessment Scheme (SAS) is still hanging in the balance as the Government has neither rejected nor approved it.

The tax rates were revised by a committee appointed by the Mangalore City Corporation.

The council in its June 30, 2009 meeting approved the revised rates. It was then sent for the Government’s approval.

Commissioner of the corporation K.N. Vijayaprakash is likely to meet top officials of the Department of Urban Development in Bangalore this week to take up the matter with them.

According to a few officials in the corporation, the Government is unlikely to approve the revised tax rates. While all urban local bodies had implemented the tax rates fixed by the Government, it may not amend the law only to incorporate the changes made by the council of the Mangalore City Corporation, which has also included sub-slabs in the revised tax structure.

A senior official in the district administration also told The Hindu that the Government was unlikely to approve the revised rates.

Many taxpayers are now confused. They are unable to decide whether to pay the tax or not. As the corporation has not come out with a clear statement, the authorities concerned are not keen on collecting property tax from the people.

Mr. Vijayaprakash told The Hindu that the property tax collection under the SAS during 2009-10 till October-end was Rs. 8 crore. In 2008-09 the collection was only Rs. 6.5 crore.

He said that if revised rates were to be implemented, the corporation might collect Rs. 18.56 crore in this financial year. Otherwise, it hoped to collect Rs. 24.56 crore.


In the proposal submitted to the Government, the civic body has reduced the tax rates for commercial and non-residential buildings from the present 2 per cent to a minimum of 0.5 per cent and maximum of 1.5 per cent.

The 2 per cent tax rate is the standard levy, which does not allow for minimum or maximum rates, as proposed by the civic body.

According to the revised structure, the tax for commercial and non-residential buildings has been fixed by dividing taxpayers into 11 categories with different slabs. Different rates have been proposed for different floors of a building.

Residential buildings

The tax rate for residential buildings now stands at 0.6 per cent, which is standard. There is no minimum or maximum rate.

The council has revised it to a minimum of 0.3 per cent and to a maximum of 0.8 per cent, depending on the plinth area.

Proposed rates

The rates proposed by the civic body are: 0.3 per cent up to 500 sq. ft area; 0.4 per cent between 501 sq. ft and 1,000 sq. ft; 0.5 per cent from 1,001 sq. ft to 2,000 sq. ft; 0.6 per cent between 2,000 sq. ft and 3,000 sq. ft; 0.7 per cent from 3,000 sq. ft to 4,000 sq. ft; and 0.8 per cent for 4,000 sq. ft and above.

The rates for vacant sites have also been revised.

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